As a Businessman and Entrepreneur, which do you think is more important between Return On Asset (ROA) and Return On Investment (ROI)? Choose only one and explain.
Q: Fixed Assets Turnover Ratio
A: Fixed asset turnover ratio is helpful in computing the return on investment on assets like plant, bu...
Q: emand loan was paid off with payments of $3,000 on April 10th, $2,000 on September 25th and a final ...
A: loans are paid by the installment payment and these are paid by the payment that carry the payment f...
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery ...
A: Formula's Calculations: Therefore; WACC is 6.24%
Q: Explain three different features between Islamic and conventional bank?
A: A bank may be a sort of financial organization that's permitted to simply accept deposits and supply...
Q: What principal amount is equivalent to a withdrawal of 10,600 on the 2ndyear, 4,000 on the 4thyear, ...
A:
Q: A ShanmukhaRao Kosuri Pvt. Ltd. has a target capital structure of 65 percent debt and 35 percent equ...
A: Here, Equity percentage (w1) = 35% Debt percentage (w2) = 65% Cost of equity (Ke) = 7.5% Cost of de...
Q: In honor of International women's day, How do you feel empowered as a woman in the field of finance?
A: Finance is referred as the process of raising the capital or funds for the different kind of expendi...
Q: 8. A 1.25 acre lawn is to be sodded with 'Cavalier' zoysiagrass, which can be delivered at a cost of...
A: Solution:- Total cost to have sod delivered means how much amount is to be paid. Total amount = Law...
Q: What is the current price of a 10% coupon bond (with standard semiannual payments) if the yield-to-m...
A: Part 1: Coupon rate = 10% Yield to maturity = 5% Maturity time period = 2 years Face value = $1,000
Q: QI: you put $ 2500 in account bank , this bank gives interest 6.5% for the first 3 months of saving ...
A: Interest is the cost which the borrower has to bear on the loan taken. interest is of two kinds. It ...
Q: 2
A: Step 1 The risk premium is closely linked to the risk abhorrence; The greater the abhorrence of the ...
Q: In a fixed-for-fixed currency swap where country A’s interest rate is higher than country B’s intere...
A: A fixed for fixed currency swap is one in which the counterparties enter in to agreement to pay inte...
Q: Assets (in KD) Liabilities (in KD) 20000 Accounts Cash 80000 payable Accrued Accounts receivable Inv...
A: The question is related to Ratio Analysis. The Average Collection Period is calculated with the help...
Q: 2. Linkline's stock is trading at 55 today and you have determined the outlook for the next year is ...
A: Binomial option pricing method will be used to determine the call price of the stock. Given: S0 = $5...
Q: Sun Life Financial Trust offers a 360 -day short -term GIC at 0.65 %. It also offers a 120 -day shor...
A: Given: 360 day GIC rate = 0.65% number of days = 360 120 day short term rate = 0.58% number of days ...
Q: Gateway Tours is choosing between two bus models. One is more expensive to purchase and maintain, bu...
A: Concept :- Equivalent annual cost. It is annual cost of owning and maintaining asset determined by d...
Q: Wells Leasing Company signs an agreement on January 1, 2020, to lease equipment to Manchester Compan...
A: Cost of asset = $250000 Fair value of asset = $ 250000 Residual value = $ 25000. But it is not guran...
Q: Other things equal, which of the following will decrease the WACC of a firm that has both debt and e...
A: The Weighted Average Cost of Capital and Capital Structure both are important factors in an organiza...
Q: Find the future worth factor of an annual payment for 15 years at 13 % compounded annually.
A: Time Period = 15 Years Interest Rate = 13%
Q: Choose from the two machines which is more economical: Machine A P12,000 Machine B 14000 P2,000 Firs...
A: Equivalent uniform annual cost method is method in which equivalent annual cost is calculated which ...
Q: Which fluctuate more--long-term or short-term interest rates? Why?
A: An investor's debt to a borrower is represented by a bond, which may be a fixed-income investment (t...
Q: Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 30 percent for the ne...
A: Solution : The current share price is computed as shown below: Dividend at end of year 1 is comput...
Q: You decided to purchase a new appliance by borrowing $1,500 using Home Credit Product Loan which cha...
A: Loan is a value which is borrowed from external sources for a certain period. This amount is repaid ...
Q: Calculate the length of time that $500 monthly payments pays off a loan of $100,000 at i=.002/month....
A: Monthly payment (P) = $500 Loan amount (PV) = $100,000 Monthly interest rate (r) = 0.002 Number of m...
Q: tock price of Merck falls to $46, the rate of return of your put option is 60% 10%
A: The rate of return is the percentage profit earned on the investment and that indicates the profitab...
Q: You have 3 projects with the following cash flows: Year 1 4 Project 1 Project 2 Project 3 - $150 $18...
A: Net present Value or NPV is the present value of all the expected cashflows. NPV is an cashflow that...
Q: You are considering two ways of financing a spring break vacation. You could put it on your credit c...
A: Given: Particulars Rate Credit card rate 14.000% Interest rate 10.00%
Q: You decided to purchase a new appliance by borrowing $1,500 using Home Credit Product Loan which cha...
A: Loan amount (PV) = $1500 Interest rate = 18% Monthly interest rate (r) = 18%/12 = 1.50% Period = 3 Y...
Q: Suppose you drive an average of 18,000 miles per year, and you need a new vehicle. You are looking a...
A:
Q: how much can Marcus spend on a car (that is, what is the total cost of the car that Marcus can purch...
A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount...
Q: ompute for the simple interest earned and maturity value, if their money will be invested in 3 years...
A: Interest can be defined as an amount of money a lender receives for lending money. There ar two type...
Q: Your firm has taken out a $480,000 loan with 8.1% APR (compounded monthly) for some commercial prope...
A: The loans are paid the monthly payments that carry the payment for interest and the payment for the ...
Q: Give at least five (5) similarities between chattel mortgage and pledge
A: Mortgages are loans that are used to buy houses and other types of real estate. The house serves as ...
Q: For purposes of computing the WACC, if the book value of equity exceeds the market value of equity, ...
A: WACC is the weighted average cost of capital of the capital sources of a firm. It includes equity, d...
Q: You borrow $5000 now and agree to pay this whole amount back in three pay Payment 1. SX in 3 months....
A: The more is compounding the more is the effective rate and less is compounding than less is the effe...
Q: Fowler, Inc., just paid a dividend of $2.40 per share on its stock. The dividends are expected to gr...
A: SOLUTION : GIVEN, Dividend = $2.40 Growth rate = 6.25% Required return = 12% Now, a. Calculating ...
Q: Regarding the trade-off theory, a firm would reach its optimal capital structure if the tax savings ...
A: Capital Structure is the break-up of total amount of funds raised by entity to finance its operation...
Q: Suppose stock returns have a 2-factor structure. You observe a broad stock market portfolio A which...
A: Portfolio A return (Ra) = 7.4% Portfolio B return (Rb) = 10.6% Beta of first factor for A (A1) = 0.5...
Q: If Shannon Pegnim had started her IRA at age 35 rather than age 14, how big of an annual contributio...
A: IRA refers to the individual retirement account of an individual which is used by the individual to ...
Q: lax S O both debtholders and equityholders. debtholders. equityholders. only the firm's customers.
A: In the capital structure of company there use of debt and equity and proper use of debt and equity w...
Q: Analyze and discuss the entire Philippine financial system, specifically the banking and non-banking...
A: A financial institution (FI) is a company that deals with financial and monetary transactions like d...
Q: Is bond financing risky or safe for a company? Explain in details. Why bond investing safer for inve...
A: Bond financing is a sort of long-term borrowing that is Particulary used by various state and centr...
Q: What does empirical evidence suggest about the distribution of gains from mergers? Shareholders of t...
A: Gain from merger can be calculated by analyzing the change in the total equity value of company betw...
Q: Analyze the following accounts and satisfy the requirements given below. Accounts payable Accrued ex...
A: Fist we need to prepare balance sheet for calculation of requirements. The balance sheet equation is...
Q: c f P5000 iš ich year a single payment of osited in an account that earns 16% pounded continuously. ...
A: The future value of the annuity includes the amount deposited and amount of interest accumulated ove...
Q: A man invested P60,000 now for the college education of his 2-year old son. If the fund earns 14% ef...
A: Future Value: It is value of money (expected to be worth in the future) at a future date based on ...
Q: Regarding MM 1958 proposition, a firm's value is not influenced by O interest rate paid on debt. req...
A: Modigliani-Miller's approach is considered to be one of the most important theorems in corporate fin...
Q: XYZ corporation has never paid dividend but will start paying its first dividend from next year. It ...
A: Dividend in Year -1 is $2 Growth rate in Year -2 is 15% Growth rate in Year -3 is 18% Required rate ...
Q: The option is currently a.) In-the-money b.) At-the-money c.) Out-the-money 2.) In/At/Out- the m...
A: For a put option if the Strike price is more than the underlying or current stock price then the put...
Q: Calculate the inventory period of Havells Ltd with an annual cost of goods sold of $8 million, $1.5 ...
A: Inventory days can be said as the number of days an item of inventory is held in a company. It is a ...
As a Businessman and Entrepreneur, which do you think is more important between
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- Please answer the question as follow? Profit Maximize and Wealth Maximize, what is difference? Explain. Definition and important of financial management. Explain.Consider the advantages and disadvantages of using the accounting rate of return as an investing criteria.Based on the wealth maximization goal, the financial manager would A. choose Asset A. B. choose Asset B. C. choose Asset C D. be indifferent between Asset A and Asset B.
- The following are investment criteria: net present value, payback, profitability index, average accounting return, and the internal rate of return. Question: Which one of these is the most valuable from a financial point of view, and why? (Answer the question correctly and in-depth.)Explain briefly what working capital and working capital management are and what they do. Explain the link between current asset policy and liquidity, profit, and risk as well as any other relevant factors. So, which policy do you believe to be the most beneficial?As Financial Manager what would be your decision on assets and investment mattersto meet profit maximization? Analyze carefully and encircle your best answer.
- Distinguish between different levels of financial market efficiency. Give examples toillustrate your answer.Financially, how can an entrepreneur maximize their return on their investment?Compare the two companies and declare which of the two company will be: a. Profitable b. Ideal for investment c. Good for short term investment d. Good for long term investment
- Would you rather invest in: (compare and contrast) 1. Other Investment Assets 2. Alternatives to Fixed Income and EquitiesHow are human and physical capital investment decisions similar? How do they differ? What determines the profitability of a physical capital investment? Do human capital investors make profits? If so, what is the source of the profit? Explain.Does the Profitability Analysis play an important role in decision making? How?